All posts tagged surgical

Intuitive Surgical Inc. slashed its projection for growth in the number of procedures performed with its da Vinci surgery system, citing in part an FDA advisory last week about the risks of power morcellators to spread cancer.

Intuitive Surgical says it expects the number of procedures performed with its machines to rise in a range of 2% to 8% in 2014, down from its previous guidance of 9% to 12% growth.

Last week, the FDA discouraged surgeons from using cutting tools known as power morcellators to remove uterine growths called fibroids, which are a common reason for hysterectomies. There is a risk that the tools can spread a hidden cancer, the FDA said.

Intuitive Surgical doesn’t make power morcellators, but gynecologists say it’s common to use Intuitive’s da Vinci robots to perform the initial parts of hysterectomies, then follow-up by morcellating with the hand-held tools.

Intuitive Surgical Inc. (ISRG), the maker of expensive robotic-surgery systems that are facing questions about their safety and cost-effectiveness, already has warned about disappointing second-quarter results, but the company’s full report after the bell Thursday should help investors better understand the reasons behind the sales slowdown.

The Sunnyvale, Calif., company last week blamed the results on hospitals cutting back on spending and slowed growth in a key procedural area, but some hospital administrators and surgeons said they are taking a harder look at their use of the company’s products in the wake of a controversy over the robotic surgery’s costs and safety.

While no hospital officials interviewed for this article said they would stop using the systems, some suggested they are reviewing their training and safety procedures. Any slowdown in momentum for the da Vinci machines, which had an average sales price of $1.55 million last quarter, could further deflate Intuitive Surgical’s once high-flying stock.